DOW INC
For the period ended Sep 30, 2024. Filed Oct 25, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 25, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Segments and Geographic Regions
NOTE 21 –SEGMENTS AND GEOGRAPHIC REGIONS
Dow’s measure of profit/loss for segment reporting purposes is Operating EBIT as this is the manner in which the Company's chief operating decision maker assesses performance and allocates resources. The Company defines Operating EBIT as earnings (i.e., "Income before income taxes") before interest, excluding the impact of significant items. Operating EBIT by segment includes all operating items relating to the businesses; items that principally apply to Dow as a whole are assigned to Corporate.
| Segment Information | Pack. & Spec. Plastics | Ind. Interm. & Infrast. | Perf. Materials & Coatings | Corp. | Total |
|---|---|---|---|---|---|
| In millions | |||||
| Net sales | $5,516 | $2,962 | $2,214 | $187 | $10,879 |
| Equity in earnings (losses) of nonconsolidated affiliates | $16 | $(17) | $1 | $2 | $2 |
| Dow Inc. Operating EBIT 1 | $618 | $(53) | $140 | $(64) | $641 |
| Net sales | $5,454 | $3,035 | $2,130 | $111 | $10,730 |
| Equity in earnings (losses) of nonconsolidated affiliates | $50 | $(63) | $5 | $1 | $(7) |
| Dow Inc. Operating EBIT 1 | $476 | $21 | $179 | $(50) | $626 |
| Net sales | $16,461 | $8,921 | $6,609 | $568 | $32,559 |
| Equity in earnings (losses) of nonconsolidated affiliates | $96 | $(63) | $9 | $3 | $45 |
| Dow Inc. Operating EBIT 1 | $1,926 | $41 | $327 | $(160) | $2,134 |
| Net sales | $17,508 | $9,590 | $6,603 | $300 | $34,001 |
| Equity in earnings (losses) of nonconsolidated affiliates | $90 | $(219) | $14 | $3 | $(112) |
| Dow Inc. Operating EBIT 1 | $2,036 | $109 | $280 | $(206) | $2,219 |
- Operating EBIT for TDCC for the three and nine months ended September 30, 2024 and 2023 is substantially the same as that of Dow Inc. and therefore has not been disclosed separately in the table above. A reconciliation of "Net income" to Operating EBIT is provided in the following table.
| Reconciliation of "Net income" to Operating EBIT | Three Months Ended | Nine Months Ended | ||
|---|---|---|---|---|
| In millions | Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 |
| Net income | $240 | $327 | $1,236 | $755 |
| + Provision for income taxes | 84 | 90 | 145 | 253 |
| Income before income taxes | $324 | $417 | $1,381 | $1,008 |
| - Interest income | 36 | 44 | 143 | 186 |
| + Interest expense and amortization of debt discount | 199 | 192 | 595 | 549 |
| - Significant items | (154) | (61) | (301) | (848) |
| Operating EBIT | $641 | $626 | $2,134 | $2,219 |
The following tables summarize the pretax impact of significant items by segment excluded from Operating EBIT:
| Significant Items by Segment · Three Months Ended Sep 30, 2024 · Nine Months Ended Sep 30, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Pack. & Spec. Plastics · Ind. Interm. & Infrast. · Perf. Mat. & Coatings · Corp. · Total · Pack. & Spec. Plastics · Ind. Interm. & Infrast. · Perf. Mat. & Coatings · Corp. · Total | ||||||||||
| In millions | ||||||||||
| Restructuring, implementation and efficiency costs, and asset related charges - net 1 | $— | $— | $(7) | $(72) | $(79) | $(37) | $(8) | $(7) | $(174) | $(226) |
| Indemnification and other transaction related costs 2 | — | — | — | (75) | (75) | — | — | — | (75) | (75) |
| Total | $— | $— | $(7) | $(147) | $(154) | $(37) | $(8) | $(7) | $(249) | $(301) |
Includes restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring Program. The three and nine months ended September 30, 2024 also include impairment charges related to the write-down of certain manufacturing assets. See Note 5 for additional information.
Includes a charge related to an arbitration settlement agreement for historical product claims from a divested business. See Note 13 for additional information.
| Significant Items by Segment · Three Months Ended Sep 30, 2023 · Nine Months Ended Sep 30, 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Pack. & Spec. Plastics · Ind. Interm. & Infrast. · Perf. Mat. & Coatings · Corp. · Total · Pack. & Spec. Plastics · Ind. Interm. & Infrast. · Perf. Mat. & Coatings · Corp. · Total | ||||||||||
| In millions | ||||||||||
| Restructuring, implementation and efficiency costs, and asset related charges - net 1 | $— | $— | $— | $(82) | $(82) | $(1) | $(48) | $(67) | $(572) | $(688) |
| Litigation related charges, awards and adjustments 2 | — | — | — | — | — | — | (177) | — | — | (177) |
| Indemnification and other transactions related costs 3 | — | — | — | 21 | 21 | — | — | — | 17 | 17 |
| Total | $— | $— | $— | $(61) | $(61) | $(1) | $(225) | $(67) | $(555) | $(848) |
Includes restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring Program. The nine months ended September 30, 2023 also includes certain gains and losses associated with previously impaired equity investments.
Includes a loss associated with legacy agricultural products groundwater contamination matters. See Note 13 for additional information.
Primarily related to charges associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation.
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